Ninth Circuit holds rent control law to constitute an unconstitutional taking of property

The Ninth Circuit ruled in Guggenheim v. Goleta that a rent control law covering mobile homes violated the takings clause because it transferred 90% of the market value of the tenancy from the landlord to the tenants. The court distinguish Yee v. City of Escondido, 503 U.S. 519 (1992) on the ground that Yee held that such a law did not effectuate a “physical taking” but left open the question of whether the law constituted a regulatory taking under the Penn Central ad hoc test.